Rent vs Own Equipment Comparison methodology

rentCostExTax = rental fixed cost + rental cost per period × expected use periods

ownCostExTax = purchase price − residual value + ownership cost per period × expected use periods

crossoverPeriods = ceiling((purchase price − residual value − rental fixed cost) ÷ (rental cost per period − ownership cost per period)) when rental period cost is higher

Money inputs and outputs use the currency selected in the scenario without changing the canonical methodology. Rates, margins, utilisation and buffers are entered as percentages and converted to decimal values for calculation.

• All values must be finite and remain inside the visible input boundaries.
• All money values use one consistent ex-tax basis and period.
• Rates must remain inside their engine-owned boundaries.
• Expected use periods must be a whole non-negative number and residual value cannot exceed purchase price.
• Crossover is unavailable when rental cost per period does not exceed ownership cost per period.

Expected use periods minimum

expectedUsePeriods ≥ 0 whole use periods — A lower value is rejected before calculation.

Expected use periods maximum

expectedUsePeriods ≤ 100,000,000 whole use periods — A higher value is rejected before calculation.

Rental fixed cost minimum

rentalFixedCostExTax ≥ 0 currency units/comparison horizon, ex tax — A lower value is rejected before calculation.

Rental fixed cost maximum

rentalFixedCostExTax ≤ 10,000,000 currency units/comparison horizon, ex tax — A higher value is rejected before calculation.

Rental cost per period minimum

rentalCostPerPeriodExTax ≥ 0 currency units/use period, ex tax — A lower value is rejected before calculation.

Rental cost per period maximum

rentalCostPerPeriodExTax ≤ 10,000,000 currency units/use period, ex tax — A higher value is rejected before calculation.

Purchase price minimum

purchasePriceExTax ≥ 0 currency units/purchased asset, ex tax — A lower value is rejected before calculation.

Purchase price maximum

purchasePriceExTax ≤ 10,000,000 currency units/purchased asset, ex tax — A higher value is rejected before calculation.

Residual value minimum

residualValueExTax ≥ 0 currency units/purchased asset at comparison-horizon end, ex tax — A lower value is rejected before calculation.

Residual value maximum

residualValueExTax ≤ 10,000,000 currency units/purchased asset at comparison-horizon end, ex tax — A higher value is rejected before calculation.

Ownership cost per period minimum

ownershipCostPerPeriodExTax ≥ 0 currency units/use period, ex tax — A lower value is rejected before calculation.

Ownership cost per period maximum

ownershipCostPerPeriodExTax ≤ 10,000,000 currency units/use period, ex tax — A higher value is rejected before calculation.

• All hours, utilisation, costs, rates and recovery targets are supplied by the user.
• Money values use one consistent ex-tax basis.
• No provider fee, jurisdiction, benchmark or demand forecast is embedded.
• Raw engine precision is retained until display.

This comparison calculator has no current policy-data dependency. Its commercial assumptions are user supplied. Registered family-level regression suites exercise the shared business-logic engine and worked-result reconciliation.

• Results depend on the completeness and classification of the entered business records.
• The planner does not forecast demand, utilisation, supplier terms or project outcomes.
• This is educational business decision support rather than accounting, tax, legal or financial advice.
• The comparison uses undiscounted entered costs and does not predict resale value, utilisation, downtime or financing terms.

This is educational decision support, not tax, accounting, legal or financial advice. Check the treatment of your actual transactions under the rules that apply to your business and seek qualified advice where appropriate.

Registered family-level suites test formula invariants and example reconciliation; the release ledger records that coverage without claiming a separate oracle for every line of public copy. There is no official threshold or benchmark to refresh for this comparison calculator. Commercial inputs remain user-supplied because they vary by business and contract.

1. 2026-07-16: Initial public release of the Rent vs Own Equipment planner and methodology.